You Have $5,000 in a 36 Month Certificate of Deposit

question 37

Multiple Choice

You have $5,000 in a 36 month Certificate of Deposit that has an APR of 3.75%. If inflation averages 4.25% during these 36 months, what is the real return on your CD?

• A) 3.75%
• B) 8.0%
• C) negative .50%
• D) negative 8.0%

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Definitions:

Product Line Extension

The addition of new products to an existing product line to attract new customers or to capitalize on existing brand loyalty within the market.

Product Life Cycle

The stages a product goes through from development and introduction to the market, through growth and maturity, and eventually decline.

Industry Sales Revenue

The total earnings generated by companies within a particular sector, indicating the overall financial performance and economic health of the industry.

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or sales activity within a business.